Monday, August 9, 2021
Round-up of important news from major Korean dailies and from international media today
The Korea Post (http://www.koreapost.com/)
“Peru hopes to further bolster her partnership with Korea”
Ambassador Daul Matute-Mejia of the Republic of Peru in Seoul said, “Yes, the Republic of Peru wants to continue increasing and strengthening her partnership and cooperation with the Republic of Korea.” Speaking with The Korea Post at an interview at the Embassy of the Peru in the prosperous downtown district of Jung-gu in Seoul on July 21, 2021, Ambassador Matute-Mejia reminded, “Even during the Corona Pandemic period last year, our exports to Korea amounted to US$2.25 billion and imports from Korea to US$4.7 billion.” Ambassador Matute-Mejia is considered among Koreans as one of the most friendly foreign envoys to Korea. He obviously enjoys his tour of duty in Korea and has even developed a taste for Korean food and beverage. Ambassador Matutue-Mejia is known to frequently visit genuine Korean restaurants and relish some of the widely known dishes such as Samgyeopsal (pork belly) luncheon, which is a favorite dish for many Koreans, including some gourmet National Assembly members.
Korea Shipbuilding & Offshore Engineering wins $57.8 million order for U.S. marine facility
Korea Shipbuilding & Offshore Engineering (KSOE) has won a 659.2 billion won ($57.8 million) order for U.S. marine facilities. KSOE announced on Aug. 6 that it recently signed a contract with a U.S.-based crude oil developer to build marine facilities for one semi-submersible crude oil production facility (FPS). The FPS, which is 91 meters long, 91 meters wide and 90 meters high, can produce 100,000 barrels of crude oil and 4 million cubic meters of natural gas a day. The facility will be carried out in Ulsan Hyundai Heavy Industries under the Engineering, Procurement and Construction (EPC) method and will be manufactured in the third quarter of next year. It will be installed in Shenandoah Field, 300 kilometers south of Louisiana, the U.S. in the second half of 2024.
PCR-test laboratory of AMSBIO recently opened in Seoul
PCR-test laboratory of a Korean company, AMSBIO (part of the Omnisystem Corporation), recently opened the company in a ceremony attended by Ambassador Kemelova Dinara of the Kyrgyz Republic in Seoul and a number of Korean and Kyrgyz dignitaries, including Minister of Health and Social Development Beishenaliev Alymkadyr of the Kyrgyz Republic and President Ms. Park Hye-rin Omnisystem. The company specializes in the production of PCR tests and related equipment that are distinguished by their uniqueness.
KBS (http://world.kbs.co.kr/english/news/)
More Ruling Party Lawmakers Urging Cancellation in Joint Drills with US
COVID-19 vaccine reservations for the general public aged 18 to 49 will open at 8 p.m. Monday. The state vaccine task force said that eligible people will be divided into ten groups according to their birthdate and can only make reservations on the day that shares the last digit of their birthdate. For example, people in the age group born on the 9, 19 and 29 may make appointments from 8 p.m. on Monday, August 9 to 6 p.m. the following day. About 16-point-two million eligible people in this group may make reservations online via the task force website (https://ncvr.kdca.go.kr) after verifying their identities. Methods of identification include mobile phone, I-PIN, authorized certificates for financial transactions as well as simple identification certificates issued by Kakao, Naver and PASS. Reservations by a proxy or using multiple devices will be strictly prohibited. Those who miss the designated days may make reservations from 8 p.m. on August 19 to 6 p.m. on September 18.
S. Korea to Remain Under Current Social Distancing, Gathering Ban for 2 More Weeks
South Korea will remain under the current social distancing levels for another two weeks from Monday. Seoul and nearby Gyeonggi Province and Incheon will remain under the highest Level Four, while other parts of the nation will be placed under Level Three until August 22. In the capital region, a ban on private gatherings will remain limited to four people until 6 p.m., after which the cap will drop down to two people. The cap is set at four in non-capital regions regardless of time. Vaccinated people and immediate family members who do not live together are also subject to the ban. Public events and street rallies are prohibited, while up to 49 people including friends are allowed to attend weddings or funerals. A restriction on only allowing family members and relatives was excluded. Nightlife venues, including clubs and bars, must shut down, while other multipurpose facilities, such as restaurants and coffee shops, can only stay open until 10 p.m.
S. Korea Reports First ASF Case in 3 Months
South Korea reported its first case of African swine fever (ASF) in three months. The ASF Central Disaster Management Headquarters, which is under the auspices of the Agriculture Ministry, said on Sunday that pigs at a farm in Goseong, Gangwon Province were infected with the deadly animal disease. The provincial government immediately sent two quarantine officials to assist in quarantine efforts and began to cull about 24-hundred pigs at the farm. It is also setting up additional checkpoints in the Goseong area to contain the spread of the disease and issued a 48-hour travel ban on all pig farms in the province. It is the first instance of ASF since a case was found at a pig farm in Yeongwol in the province on May 5.
Yonhap (http://english.yonhapnews.co.kr)
S. Korean economy faces heightened uncertainty amid 4th wave of pandemic: KDI
The South Korean economy is facing heightened uncertainty as the recovery of domestic demand is likely to slow amid a recent spike in COVID-19 cases, a state-run think tank said Sunday. Asia's fourth-largest economy is on a recovery track amid solid exports, but the toughest-ever virus curbs, in effect due to the fourth wave of the pandemic, may dampen improving domestic demand, according to a monthly economic assessment report by the Korea Development Institute (KDI). "The intensifying spread of COVID-19 may partially limit the recovery of domestic demand, mainly in the face-to-face service industry," the English-language report showed. South Korea is grappling with another wave of the pandemic as its daily new cases topped 1,000 for more than a month. Since July 12, the country has enforced Level 4 distancing rules, the highest in its four-tier scheme, in the greater Seoul area in a bid to stem a spike in COVID-19 cases. Most non-other capital areas are placed under the second-highest virus curbs.
Gyeonggi Gov. Lee pledges halt to smear campaign against rivals in DP presidential primary
Gyeonggi Province Gov. Lee Jae-myung, the front-running presidential contender for the ruling Democratic Party (DP), pledged Sunday to stop all smear campaigns against rivals in the party's ongoing primary election. "From this moment onward, I will not even make any negative mention of other candidates, focusing instead on debates about competence and policies," Lee said in a hastily called press conference at the National Assembly in Seoul. "Concerns are growing among party members and supporters about the escalating mudslinging in the party's primary process," Lee said of the background of his pledge. Lee's announcement came as the governor, former DP Chairman Rep. Lee Nak-yon and other DP presidential contenders are locked in an intense slugfest in the overheated party primary to pick the single presidential contender to run in the March presidential election. The DP's leadership has repeatedly warned against mudslinging between the presidential contenders and party elders have also voiced concerns over the infighting, which they said could hammer public opinion toward the entire party.
New COVID-19 cases fall below 1,800 amid stepped-up vigilance
South Korea's daily new coronavirus cases fell below 1,800 on Sunday but still marked the highest tally for a Sunday to date, with the country extending its stringent virus curbs amid few signs of the situation abating. The country added 1,729 COVID-19 cases, including 1,670 local infections, raising the total caseload to 210,956, according to the Korea Disease Control and Prevention Agency (KDCA). The latest caseload is down from 1,823 reported Saturday but up from 1,704 on Friday. Daily cases usually fall over weekends due to fewer tests, but Sunday's cases showed there are no signs of the COVID-19 pandemic being contained. The country added five more deaths from COVID-19, raising the death toll to 2,121. Later in the day, health authorities and local governments said 1,415 new cases were confirmed from 12 a.m. to 9 p.m. Sunday, 154 fewer than at the same time the previous day. However, it was the highest daily figure recorded on a Sunday.
The Korea Herald (http://www.koreaherald.com)
FTC investigates bar association over LawTalk ban
South Korea’s Fair Trade Commission is looking into a case filed by legal counselling app LawTalk earlier this year against the Korean Bar Association after the organization decided to ban its members from joining such platforms. The clash between the disruptive mobile service and the bar association, which led to a series of tit-for-tat actions including a Constitutional Court case, could be judged from a fair trade point of view, if the FTC determines the association as a business association. Under current rules, organizations formed with more than two business people with the goal of increasing economic profit are considered a business association. As the association collects membership fees and that all practicing lawyers are required to join them, it is likely that the FTA could see it as a business association, watchers said.
Seoul subway workers gear up for strike vote
Seoul’s subway workers are mulling over waging a full-scale strike as Seoul Metro looks to carry out a massive restructuring plan to resolve continuing financial losses. Unionized workers of Seoul Metro are planning to run a vote along with union members of subway corporations of Busan, Daegu, Daejeon, Incheon and Gwangju from Aug. 16 to 19 to decide whether to launch a full-scale strike against Seoul Metro’s plan to reduce its headcount by 1,539 employees. Seoul Metro’s plan is aimed at cutting 10 percent of its 16,700 employees and cut back from its accumulated loss of more than 1 trillion won. The restricting plan also contains cutting welfare benefits and freezing wage levels on top of outsourcing some of its duties to the private sector.
S. Korea’s food prices increase to third highest among OECD states
South Korea’s food price inflation in the second quarter ranked the third highest among members of the Organization for Economic Cooperation and Development, data showed Sunday. The prices for groceries and nonalcoholic beverages surged by 7.3 percent on-year in the April-June quarter, the fastest gain since 2011, when food prices rose 7.8 percent in the same period, according to data compiled by the OECD and Statistics Korea. Far above the OECD average of 1.6 percent, this on-year rise was the third highest among the 38 OECD member countries that announced their inflation indexes for the corresponding quarter, following Turkey and Australia, which topped the list respectively with 18 percent and 10.6 percent. It climbed up 23 notches from the previous year, when prices for groceries and nonalcoholic beverages rose 2.5 percent, marking the 26th highest among OECD member states.
The Korea Times (http://www.koreatimes.co.kr)
BOK acknowledges usefulness of 'stablecoins'
The country's central bank didn't deny the role of "stablecoins" in terms of their availability in monetary transactions, the Bank of Korea (BOK) said in a report released Sunday. Stablecoins are viewed as a type of cryptocurrency connected to an asset such as the U.S. dollar which doesn't change in value drastically. These types of crypto-assets are originally used to purchase other cryptocurrencies including bitcoin because many cryptocurrency exchanges still lack direct access to traditional banking. "In the case of stablecoins, because these are designed to maintain their value stably thanks to their connection to legitimate currencies, there's a high possibility for stablecoins to be used and to be efficient when it comes to money transfers between countries, payments in the virtual world and creation of an ecosystem that will be operational with cryptocurrencies as the base," the BOK said in the report.
Conflict with big contenders undermines main opposition chief Lee's leadership
Lee Jun-seok, the youngest-ever leader of the main opposition People Power Party (PPP), was seen as a sign of change in the conservative party when he took the post in June. However his leadership is under trial after only two months, as big name presidential contenders of the party are not following the party-led campaign trails but engaging in their own campaign activities. The party's committee in charge of the primary organized a volunteer activity at a low-income neighborhood near Seoul Station on Aug. 4, where all 13 presidential hopefuls of the party were supposed to participate. But four of the biggest names ― former Prosecutor General Yoon Seok-youl, former Board of Audit and Inspection Chairman Choe Jae-hyeong, Rep. Hong Joon-pyo and former four-term lawmaker Yoo Seong-min ― skipped the event citing personal reasons. It was the first official event organized by the committee, but without the major contenders, the event lost steam.
Beijing moves to end practice of faking divorce to be able to buy additional home
Authorities in Beijing have introduced rules to stop couples from faking their divorces to be able to buy more homes in China's capital. Up until now, the city allowed married couples with a Beijing hukou - China's household registration - to buy two flats in the city. Those without a Beijing hukou as well as singles could buy only one flat. So some couples were getting divorced on paper to be able to buy another property. The new rules, which came into effect on Thursday, are designed to stop this practice. Now, anyone with a Beijing hukou who is divorced but owned two properties while they were married cannot buy another home in Beijing for three years, according to a notice issued by the Beijing Municipal Commission of Housing and Urban-rural Development late on Thursday. Those without a Beijing hukou, who owned one home during their marriage, will also be barred from buying another home.
Chosun Ilbo (http://english.chosun.com)
Stricken N.Korea Goes Back to Bluster
Impoverished North Korea returned to bluster this weekend after agreeing to reopen communication lines with South Korea last week. North Korean leader Kim Jong-un's sister Yo-jong, who frequently acts as her brother's attack dog, in a statement on Sunday night called for an end to planned South Korea-U.S. joint military exercises. Pyongyang "will closely follow whether the South Korean side stages hostile war exercises in August or makes other bold decision," she said. The U.S. and South Korea are staging a scaled-down military exercise later this month. "The restoration of the communication liaison lines should not be taken as anything more than just a physical reconnection," Kim Yo-jong fumed. "Hasty speculation and groundless interpretation will only bring despair."
Most Schoolkids Get Infected at Home, Not School
Almost half of the coronavirus infections among schoolchildren in the first semester occurred at home, much higher than the 15.9 percent of infections at schools, the Education Ministry said Thursday. Next came infections in communities with 22.6 percent. "Schools aren't the main source of infections among schoolchildren," a ministry spokesman said. "The rate of infections is still higher at home and in communities." The ministry is keen to reopen schools in the next semester to prevent children falling behind after a year of dreary online classes. Health authorities have no plan yet to vaccinate schoolchildren except high school seniors, but in a recent straw poll of 226 parents by Pusan National University Hospital, 64.2 percent of respondents said they would welcome it.
Mirae Asset Daewoo's Capital Surpasses W10 Trillion
Mirae Asset Daewoo has become the first out of Korea's 39 brokerages whose equity capital surpassed W10 trillion (US$1=W1,144). The firm said Thursday that its equity capital reached W10.47 trillion in the second quarter of the year, up W422.2 billion from the first quarter. Its operating profit stood at a record W434.3 billion. The brokerage's capital surged 51 percent over the last five years. Compared to the big players in Japan, it is smaller than Nomura Securities' W30 trillion but approaches No. 2 Daiwa Securities' W14 trillion. Korea Investment and Securities is the second-largest brokerage in Korea with an equity capital of W6.18 trillion. Mirae Asset is branching out into overseas markets to become a global investment bank. It opened its first overseas office in Hong Kong in 2003 and now has a presence in 10 countries, including China, Vietnam and Brazil, where profit before tax surged 61 percent in the second quarter to W111.5 billion.
HanKyoReh Shinmun (http://english.hani.co.kr)
S. Korea to invest $1.92 billion toward domestic vaccine development over 5 years, Moon says
South Korean President Moon Jae-in announced plans Thursday to turn South Korea into “one of the five global vaccine powers by 2025.” His remarks came while he was presiding over a “K-global vaccine hub vision and strategy” report meeting at the Blue House that day. “The government plans to name vaccines as one of three national strategic technology areas along with semiconductors and batteries, with 2.2 trillion won in investment over the next five years,” he said. As part of this, he announced plans to “vastly expand tax benefits for research and development and facility investment” while “enabling domestic companies to maximize their production capabilities through self-sufficiency in the production and technology for necessary materials, components and equipment.”
Describing vaccines as the “most effective means of defense in a war with COVID-19 that shows no signs of ending,” he noted that a “vaccine developed by a domestic company is scheduled to begin Phase 3 clinical trials this month, with the country’s first vaccine expected to go on the market by the first half of next year.”
We can’t let rich people write the new rules of space
When Amazon founder Jeff Bezos funded a brief trip into space on July 20, the most frequent criticism was that he ought to use his money to save the planet rather than to escape the planet. On top of the ongoing COVID-19 pandemic, many places on earth lack basic medical services and hygiene, even as poverty and inequality worsen. But it looked like Bezos, the world’s wealthiest person, was pretending to ignore all that earthly suffering and pouring his money into an outer space adventure that would last a matter of minutes. Others accused Bezos of funding his outer space joyride with money ultimately earned by exploiting his workers and dodging his fair share of taxes. There were also concerns that more frequent trips to space by the wealthy would increase carbon emissions, further compromising a global ecosystem that’s already being battered by climate change. Critics of Bezos can take some comfort from the fact that, while he may have briefly left the planet, he doesn’t qualify as an astronaut as defined by the US Federal Aviation Administration (FAA). The FAA’s newly updated definition makes it harder for space tourists like Bezos to gain astronaut status: astronauts are those who perform duties related to operating the spacecraft, including launch and reentry.
Greenhouse gas emissions need to be reduced dramatically, but nuclear power isn’t the way
In 1986, the worst nuclear disaster in history occurred at Chernobyl in Ukraine, which was one of the Soviet Union’s socialist republics at the time. With an impact on par with the explosion of an atomic bomb, the accident had consequences that shattered humanity’s hopes for nuclear power.
Amid the boom in nuclear power plant construction around the first petroleum crisis in 1973, work began on 315 plants worldwide over the 10 years of the 1970s. By the 1980s, that number dropped to 166; by the 1990s, it dwindled to 29. In 2011, another disaster at Japan’s Fukushima Nuclear Power Plant dealt another blow. It reminded people of just how devastating a single accident can be.
The Tokyo Shimbun newspaper reported in March 2021 that some 13.3 trillion yen (US$121.1 billion) was spent on compensation and decommissioning over the decade after the disaster. It also predicted that the total costs would vastly exceed the 21.5 trillion-yen (US$195.7 billion) projection shared by the Japanese government in 2016.
The Dong-A Ilbo (http://english.donga.com/)
Secretive ‘booster dosing’ jumps in US amid resurging Covid-19 cases
A growing number of Americans taking a booster shot even though U.S. health authorities have yet to issue recommendation for a booster in the wake of resurging Covid-19 cases. The Associated Press reported Saturday that the U.S. Centers for Disease Control and Prevention has received more than 900 reports on booster shots from medical institutions. The number was reported voluntarily by those medical institutions, which suggests that the actual number of Americans who have taken a booster dose could be higher. The situation is possible in the U.S. apparently because the country has sufficient supply of vaccines, while health authorities loosely manage vaccination records. Jina Welch, a 26-year-old woman in Maine, took a third shot after claiming to the hospital that it was her first dosing. Welch, who is suffering from asthma and liver disease, said, “I thought that I should protect myself.
UN, EU: ‘Ready to provide humanitarian aid to N. Korea for flood damage’
The United Nations and the European Union expressed intentions to provide humanitarian aid to North Korea, which suffered flood damage recently. According to Voice of America on Friday, the UN Office for the Coordination of Humanitarian Affairs said given that aggravating concern over the North’s food security after last month’s heat wave, it is preparing to support North Korean authorities’ activities helping people who suffered flood damage. The European Union’s humanitarian assistance coordination office also told Radio Free Asia Friday that the organization is worried about food shortages due to the influence of both drought and severe floods that have affected certain regions in the North, saying that if (Pyongyang) eases shutdown of its borders to allow admission of relief supplies and humanitarian aid personnel, it is ready to provide assistance.
S. Korea’s ‘foodstuff inflation’ third highest among OECD nations
South Korea saw the steepest “foodstuff” inflation in 10 years in the second quarter of this year due to sluggish crops and aftermath of avian influenza epidemics. The inflation represents the third highest among the OECD members. As African swine fever has occurred at pig farms three months after the control of the previous outbreaks, concern is mounting over runway foodstuff prices. ahead of the Chuseok (Korean thanksgiving) holiday. According to The OECD on Sunday, the price of foodstuff and beverages (excluding alcoholic drinks) jumped 7.3 percent year on year in the second quarter. The gain represents the biggest jump for a second quarter tally since 2011 (7.8 percent per annum), and is third highest after Turkey (18.0 percent) and Australia (10.6 percent) among the OECD member nations.
The KyungHyangShinmun (http://english.khan.co.kr/)
Next Year’s Minimum Wage Officially Set at 9,160 Won an Hour, Beginning January 1, 2022
Next year’s minimum wage was finalized at 9,160 won an hour, 5.05% higher than this year, as it was determined by the Minimum Wage Commission. On August 5, the Ministry of Employment and Labor posted a notice in its newsletter that the minimum wage for 2022 was finalized at 9,160 won an hour. The new minimum wage will be applied beginning January 1, 2022. Based on an hourly wage of 9,160 won, if a worker works a designated 40 hours a week (including weekly paid leave, 209 hours a month), she will receive a monthly salary of 1,914,440 won. The same minimum wage will be applied at all workplaces, regardless of industry. Labor and management had different views on stating the monthly wage along with the hourly wage and on applying the same minimum wage to all workplaces during the meeting of the Minimum Wage Commission, but eventually the commission unanimously agreed to state the hourly and monthly wages together in a meeting on June 22.
105 High-ranking Officials Disclose Their Property: Busan Mayor Park Heong-joon Turns out to Be a Rich Real Estate Owner
Among the new high-ranking officials, the wealthiest turned out to be Park Jong-seung, president of the Agency for Defense Development under the Defense Acquisition Program Administration with 6,234,620,000 won. Busan Mayor Park Heong-joon reported that he possessed real estate including land and an apartment with a market value of 6.3 billion won. The Government Ethics Committee disclosed the registered property of 105 high-ranking officials including these details on July 30. Among the officials whose property was disclosed were 39 newly elected and appointed officials, 19 who were promoted and 40 who resigned or retired.
“Two Years of COVID-19, We’re Getting Tired” Health Care Workers Are Screaming
“This year alone 3-5 fellow nurses have left, and their places still remain vacant.” A, a nurse for 11 years, worked in administration, but she volunteered to work at a hospital designated for the treatment of COVID-19 patients in the early days of winter last year to help shoulder the burden of her fellow nurses, because she was reminded of her field experience during the Middle East Respiratory Syndrome (MERS) outbreak in 2015. In a phone call with the reporter on July 30, she said, “Although I volunteered to come here, now, I would like to get out if I get the chance.” She added, “I’m already burned out and I had no idea that the situation would last this long.” The accumulated number of COVID-19 cases in South Korea exceeded 200,000 on August 1, a year and six months after the first case of the virus was confirmed in the nation on January 20, 2020.
Maeil Business News Korea (http://www.pulsenews.co.kr/)
Favorable IPO terms for foreign institutions weigh over Korean stock debutants
Favorable conditions for foreign institutions in bidding for Korean IPOs draw disgruntlement from domestic institutions as well as retailers as their dumping with less restriction often weigh over the prices of the stock debutants. According to a study done by Maeil Business Newspaper on 11 IPO prospectuses and six post-IPO reports in July, 41.5 percent of domestic institutions won their share with commitment to lockup during bookbuilding sessions, whereas the rate was just 12.2 percent for overseas institutions. Institutions promise to hold onto the initial shares for a certain period to win as many shares as possible in popular offerings. Yet foreign institutions took away greater shares even without lockup guarantee – 173 on average per 100,000 offering vs 76 for domestic players.
SK hynix places Intel’s top manager on NAND in charge of new US flash entity
SK hynix Inc. finalizing $9 billion acquisition of Intel Corp’s flash NAND and SSD business has placed its manager Robert Crooke in charge of a new U.S. corporation to ensure unwavering operation under the new Korean ownership. Robert Crooke, general manager for NAND products of Intel, revealed the news on a Linkedin post on Wednesday, saying “I am excited to share that we are currently in business development and once all the jurisdictions approve the deal, we will stand up a new global company, headquartered in the U.S. and owned by SK hynix.” “I am honored to be the CEO of this company. Stay tuned for our new company name, I’ll share it here,” he added.
SK hynix signed an agreement to acquire Intel’s NAND and SSD business for $9 billion in October last year. The acquisition will become final upon the approval from China within the year after it was cleared from seven necessary markets Korea, the U.S., European Union, the U.K. and Singapore.
KSOE clinches $577 mn offshore plant order from US oil developer
Korea Shipbuilding & Offshore Engineering Co. (KSOE), the world’s biggest shipbuilder based in South Korea, has netted an offshore plant order worth 659.2 billion won ($576.5 million) from an oil developer in the United States, its third floating production storage (FPS) order for this year. KSOE announced Friday that its subsidiary Hyundai Heavy Industries Co. is consigned to deliver an FPS facility in a 659.2 billion won deal with a U.S. oil company. The FPS facility will be later installed in the Shenandoah oil field, located 300km south of Louisiana. The FPS facility, which is 91 meters long, 91 meters wide and 90 meters high, will be capable of producing 100,000 barrels of oil and 4 million cubic meters of natural gas a day, according to the company.
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